If a payback period for a project is greater than its expected useful life, the project's return will always exceed the company'
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Answer:
the optimal order size Q is 18.56 cars
the annual inventory cost = $12066.48
the order cycle time is 42.34 days
Explanation:
Using the following expression to determine the optimal order size Q:
Hence; the optimal order size Q is 18.56 cars
The annual inventory cost is mathematically expressed as:
=
= 6034.482759 + 6032
= $12066.48276
≅ $12066.48
Hence, the annual inventory cost = $12066.48
For The order cycle time; we have;
Order cycle time =
=
=
=
= 42.34 days
Hence, the order cycle time is 42.34 days